Personal Investments • Re: Robinhood Securities Lending

I asked Robinhood support why I was receiving 1 cent for them to lending over $400,000 worth of shares.

Hi! I've a question about the Stock Lending activity shown on my July statement. Between July 19th and July 31st, over $200,000 of shares were lent out daily. On August 7th I received my stock lending interest of 2 cents. Can you help me look find the daily rebate rates for the loans?

I actually had a similar case I was able to look into the other day
Robinhood sent
if you are only getting a penny or two it is because that security has a positive lending rate and not your typical negative one
Robinhood sent
since we don't make any money from actual lending the shares but are still lending them we give you a penny

Their explanation isn't very satisfying. The chat agent suggests they make no money from the lending hundreds of thousands of dollars of shares .

My recommendation to anyone reading this thread: If your portfolio has significant portion in large blend ETFs, turn off stock lending. The reward of pennies is not worth the risk of receiving non qualified dividends when your shares are loaned out.

Statistics: Posted by gry — Fri Aug 09, 2024 7:44 pm

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